Thursday, April 30, 2009

Financial scam at Home affairs shocks Parliamentary Committee

THE Public Accounts Committee says it is shocked by the number of glaring financial irregularities in the Ministry of Home Affairs, saying this is the worst report in terms of financial management from the ministry in the last three years.

And the committee has directed Ministry of Home Affairs permanent secretary Ndiyoyi Mutiti to submit names of all officers that have misused or misapplied public funds.

Committee chairperson Charles Milupi said yesterday that for a law enforcing ministry, this is an issue of great concern. He said this when Ms Mutiti appeared before the committee to answer to audit queries highlighted in the report of the Auditor General for 2007. He said some of the irregularities are so disturbing that the Attorney General’s office and the Zambia Public procurement Authority have also raised concern about financial mismanagement in the ministry.

“The committee is shocked with what has been highlighted in the report and confirmed by the permanent secretary’s presentation. The queries from this ministry keep getting worse and Parliament cannot tolerate wrongful things in a law enforcing ministry,” Mr Milupi said.

He told Ms Ndiyoyi that she has a ‘mammoth task’ to get the ministry to perform effectively financially. He said there is poor record keeping in the ministry, a trend allegedly practiced by those that want to embezzle funds. He said a number of dishonest people have seen a loophole at the ministry, adding that the committee is directing the executive to ‘sort out the mess before it deteriorates’.

The Auditor General, in her report, observed that some officers that have been suspended , dismissed, retired or had died, continued to receive full salaries, some for more than three years. The report noted that there is unaccounted for revenue in various institutions and departments under the ministry, going into billions of Kwacha.

Contrary to financial regulations, K6.9 billion collected in 2007 by the Immigration Department at immigration headquarters, Lusaka region and Katima Mulilo, was only deposited into Control 99 in February 2009. Other irregularities include variation of contract prices, undelivered motor vehicles paid for using public funds, irregular contracts, unreturned imprest and wasteful expenditure. Other irregularities are failure to process loss reports, unvouched expenditure, over-statement of prices, non-recovery of loans, missing payment vouchers, unsupported payment vouchers and delayed banking.

Nchelenge MP Ben Mwila said there was ‘gross indiscipline’ in the ministry, adding that it is not right for an institution which is a custodian of laws to make verbal contracts, in amounts exceeding billions of Kwacha.

Accountant General Mike Goma said there must be no excuse for financial irregularities because every year, his office trains a number of officers in revenue collecting institutions, most of whom are non-accounting staff.

And the committee has directed Ms Mutiti to submit names of officers that have misused or misapplied public funds.

Mr Milupi said the committee would like to see proof of action that has been taken against the officers. He said the names must be submitted without hesitation, adding that there is nothing sensitive about publicising names of people who embezzle public money. He said it is not enough for the controlling officer to recover money from an officer who steals public funds, adding that the affected officers must be dealt with according to the law.

Ms Mutiti admitted that most of the things that have happened in her ministry are not correct and that she regrets the action. She admitted that as a ministry that is expected to clean up other ministries, there is need for the Ministry of Home Affairs to put its house in order.

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